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TRUSTCO GROUP HOLDINGS LIMITED - Short Form Announcement - Consolidated Unaudited Interim Results for the Six Months Ended 30 September 2019

Release Date: 12/12/2019 16:15
Code(s): TTO     PDF:  
 
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Short Form Announcement - Consolidated Unaudited Interim Results for the Six Months Ended 30 September 2019

TRUSTCO GROUP HOLDINGS LIMITED
Incorporated in the Republic of Namibia
(Registration number 2003/058)
Registered as an external company in South Africa
(External registration number 2009/002634/10)
NSX share code: TUC
JSE share code: TTO
OTCQX share code: TSCHY
ISIN Number: NA000A0RF067
(“Trustco” or “the Company”)


SHORT FORM ANNOUNCEMENT - CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE SIX
MONTHS ENDED 30 SEPTEMBER 2019


 Financial Highlights
                                      Change        30-Sep-19       30-Sep-18

                                                    (Unaudited) (Unaudited)

                                      (%)
                                                      NAD ‘000        NAD ‘000
 Revenue                                   28.40%       320 159        249 336
 Gross Profit                              78.93%       256 694        143 462
 Profit before tax                       1665.61%       777 344         44 027
 NPAT                                     725.53%       738 298         89 433
 Headline Earnings                        823.22%       759 382         82 254
 Basic EPS (c)                            420.66%         74.09          14.23
 Diluted EPS (c)                          579.24%         53.32           7.85
 HEPS (c)                                 612.89%         75.21          10.55
 Diluted HEPS (c)                         830.07%         54.13           5.82
 NAV/Share (c)                             -4.39%          370             387
 Share price (c)                            8.90%         1040             955
 Dividend per share (c)                        0%            0               0

Trustco is a diversified triple-listed majority family owned and operated business, with a culture of
creating long-term sustainable growth for all stakeholders. Decisions are biased toward long-term
value creation and short-term hurdles are viewed as catalysts to drive success. Trustco operation from
three business segments being: Insurance and its investments, Banking and finance and Resources.


Business Review and Outlook

Trustco is pleased to advise Trustco Shareholders (“Shareholders”) on the financial results for the six
months ended 30 September 2019 (“the Reporting Period”) and that the period under review
recorded persistent adverse economic conditions inflamed by a historic drought in the Southern
African region, leading to an international credit rating downgrade of Namibia’s sovereign rating
status during this time.

During the Reporting Period the Company realized revenues of NAD 320.2 million, an increase of 28%
compared to the corresponding period of the prior year, with profits for the Reporting Period of NAD
738.3 million, an increase of NAD 649 million. The Global Credit Rating Company (GCR) also upgraded
Trustco’ s national long term rating to B+ (NA) with and its short term rating to B (NA) with a positive
outlook during the Reporting Period.

In order to secure further capital, Trustco entered into a warrant transaction with Evo Fund, whereby
Evo acquired four tranches of warrants (“Evo Transactions”) (Shareholders are referred to the circular
dated 6 September 2019 regarding the Evo Transaction together with the SENS announcements
published on 30 September 2019 and 16 October 2019 advising Shareholders of the approval of the
Evo Transaction and the issuance of the warrant certificates).

Evo Fund has already exercised 10 000 shares of the first tranche to benchmark the process
(Shareholders are referred to the SENS announcement as published on 24 October 2019 regarding the
partial exercise of the first warrant certificate in Africa). This Evo Transaction could raise up to NAD2
billion if fully executed to fund the continuous pursuit of Trustco for growth and wealth creation.
In order to accelerate the access to growth opportunities, the Company’s majority shareholder, Dr Q
van Rooyen and associates (“van Rooyen”), waived a NAD 1 billion loan to the group as established in
the Related Party Loan Program during 2018. This, further deleverage the balance sheet of Trustco
and supported the Resources Segment while the group prepares for an intended IPO of this segment
(Shareholders are referred to the SENS announcement published on the 14th of October 2019
regarding the write-off of the NAD 1 billion loan by van Rooyen.)


Dividends
The board of directors has decided to defer the declaration of any interim dividend for the Reporting
Period.

Short Form Announcement
Shareholders are advised that the contents of the unaudited short form SENS announcement is the
responsibility of the directors. This short form announcement only contains a summary of the
unaudited condensed consolidated interim results for the six months ended 30 September 2019 and
does not contain full or complete details. Any investment decisions by investors and/or Shareholders
should be based, after consideration of the full version of the results announcement published on
SENS and the Company’s website as a whole.

The full version of the results is available on the JSE’s website:
https://senspdf.jse.co.za/documents/2019/jse/isse/TTO/TTOSEP2019.pdf

The full version of the results is also available for downloading on Trustco’s website:
https://www.tgh.na/investors/results-centre/

The full version of the results is available for inspection at the registered office of the Company:
Trustco House, 2 Keller Street, Windhoek, Namibia, or, upon enquiry, a printed version may be
requested from the Company Secretary, heleens@tgh.na at no charge, during normal business hours.
The full version of the results is also available for inspection at the Company’s Sponsor during normal
business hours at no charge.
On behalf of the board of directors

Executive
Dr Q van Rooyen (Group Managing Director)
Mr. F Abrahams (Group Financial Director)

Non- Executive
*Adv R Heathcote SC (Chairman)
*Prof L J Weldon (Lead Independent)
*Mr. W J Geyser
*Mr. R J Taljaard
*Ms. K N van Niekerk

(*Independent)

All directors are Namibian with the exception of Prof L J Weldon and Ms K N van Niekerk who are South
African citizens.


Windhoek, Namibia
12 December 2019

Heleen Steyn
Acting Company Secretary:
Trustco Group Holdings Limited

JSE Sponsor
Vunani Corporate Finance - Johannesburg

NSX Sponsor
Simonis Storm Securities Proprietary Limited – Windhoek

OTCQX Sponsor
J.P Galda & Co – New York


South African Transfer Secretaries
Computershare Investor Services (Pty) Ltd

Namibian Transfer Secretaries:
Transfer Secretaries (Pty) Ltd

Date: 12-12-2019 04:15:00
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